Corporate Governance, Sustainability and Finance

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Sustainability and Finance".

Deadline for manuscript submissions: 31 August 2026 | Viewed by 1394

Editor

School of Business and Law, Central Queensland University, Sydney, Australia
Interests: financial economics; corporate governance; corporate finance; asset pricing; executive compensation; earnings management

Special Issue Information

Dear Colleagues,

In the last few decades, corporate governance codes and rules have been introduced in many countries. Good corporate governance practices emphasize the independence of boards, with board committees increasingly expected to focus on improving interaction between the firms and society. To date, the research on corporate governance is quickly evolving to a broader territory that considers environmental, social and governance challenges. There is also a growth in socially responsible and sustainable investments, e.g., green bonds, low-carbon investments, and companies’ disclosure of climate-related information is favoured by many investors. To catch investors’ attention, companies are enthusiastic about presenting superior performance in environmental, social, and governance fields and their sustainability practices. However, do companies with good performance in corporate governance and sustainability practices yield high profits? Can investors generate returns by investing in companies that are socially and environmentally responsible and doing good things? These questions take us to an early debate, where Milton Friedman argued that the social responsibility of a business is to increase its profits. However, others have suggested that the priority of business is to ensure the well-being of customers, employees, and communities, and that a firm’s relationship with a variety of stakeholders can prove to be important factors in creating firm value.

This Special Issue intends to revisit the debate and further examine the relationships between corporate governance, sustainability practices, and financial performance. Contributions to this Special Issue are expected to provide insightful findings and understanding around finance, investment, corporate governance and sustainability. We are particularly interested in topics involving climate-related financial disclosures and sustainability reporting, ESG integration, asset pricing, and firm value, and also welcome studies from the perspective of sustainable household financial management.

Dr. Lan Sun
Guest Editor

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Keywords

  • corporate governance
  • sustainable finance and investment
  • sustainability reporting
  • ESG integration
  • asset pricing
  • firm value

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Published Papers (2 papers)

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Research

17 pages, 292 KB  
Article
Board Characteristics, Climate Change Disclosures and the Moderating Role of Corporate Governance Code: Evidence from a Developing Economy
by Rajib Chakraborty, Lan Sun, Urmee Ghose and Ayub Islam
J. Risk Financial Manag. 2026, 19(6), 442; https://doi.org/10.3390/jrfm19060442 - 18 Jun 2026
Viewed by 305
Abstract
This present study aims to investigate the influence of board characteristics on the level of climate change disclosures and the extent to which the implementation of the corporate governance code (CGC) moderates these factors. The ordinary least squares statistical method is used to [...] Read more.
This present study aims to investigate the influence of board characteristics on the level of climate change disclosures and the extent to which the implementation of the corporate governance code (CGC) moderates these factors. The ordinary least squares statistical method is used to analyze the panel data. In addition, the Tobit regression model is also estimated to check the robustness of the study findings. This study suggests that larger board sizes, more independent directors, and board meeting frequency are positively associated with higher levels of climate change disclosure. However, the study does not find any association between CEO duality, foreign ownership, and climate change disclosure. In addition, it is also observed that CGC can enhance the influence of board characteristics on the likelihood of disclosing climate information. The study offers necessary directions for regulatory authorities, business firms, and practitioners to be more transparent in disclosing climate information and extends guidelines to tackle climate change disclosure issues. Full article
(This article belongs to the Special Issue Corporate Governance, Sustainability and Finance)
32 pages, 573 KB  
Article
Innovation, Green Management, and Value Creation in Indonesian Healthcare: The Mediating Role of Business Sustainability
by Wiwik Utami, Erna Setiany, Rieke Pernamasari and Anwar Allah Pitchay
J. Risk Financial Manag. 2026, 19(6), 440; https://doi.org/10.3390/jrfm19060440 - 17 Jun 2026
Viewed by 619
Abstract
This study examines how innovation and green management influence business sustainability and firm value in Indonesian healthcare companies. Innovation is measured using Value-Added Intellectual Capital (VAIC) efficiency, green management through Environmental, Social, and Governance (ESG) scores, business sustainability as carbon emission disclosure (CEDI), [...] Read more.
This study examines how innovation and green management influence business sustainability and firm value in Indonesian healthcare companies. Innovation is measured using Value-Added Intellectual Capital (VAIC) efficiency, green management through Environmental, Social, and Governance (ESG) scores, business sustainability as carbon emission disclosure (CEDI), and firm value as Market Value Added (MVA). The sample consists of 123 firm-year observations from healthcare firms listed on the Indonesia Stock Exchange (2019–2023). Based on the capital-based theory of sustainability and stakeholder theory, hypotheses are tested using fixed-effect panel regression, Baron and Kenny mediation analysis, and Structural Equation Modelling (SEM). The results show that VAIC is the only significant predictor of MVA, with a consistent positive effect across all model specifications. Neither ESG Score nor CEDI shows a significant effect on market value, indicating that sustainability disclosure has not yet translated into measurable financial returns in this context. Within the structural model, ESG governance is the strongest predictor of carbon disclosure, while firms with higher VAIC tend to prioritise value creation over environmental reporting. All mediation hypotheses are rejected. These findings suggest that intellectual capital and sustainability practices currently function as separate strategic priorities in Indonesian healthcare. Intellectual capital produces tangible market value in the short term, while the financial benefits of sustainability disclosure are likely to emerge only as Indonesia’s ESG reporting standards and investor awareness continue to develop. Full article
(This article belongs to the Special Issue Corporate Governance, Sustainability and Finance)
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